RE: BOO HOO - The truth hurts don't itHey, don't get your knickers in a knot. I am just posting what is out there for everyone to see but doesn't actually look. I guess I hit a nerve cause ole sam couldn't even type properly - "you post is moronic".....LOL. Anyways do you think management has what it takes to live through this current financial crisis????
Interesting, Sprott's John Embry almost sounds like he prefers non-producers at this point of fluctuating gold/commods...
https://mining101.blogspot.com/2008/09/not-all-ibanks-are-made-equal-leh-mer.html
TGR: But if the price of gold doesn't turn around, don't a lot of juniors risk bankruptcy?
JE:If they’re not in production and are fairly careful, they can gearback. The ones in production and losing money are at the greatest riskof bankruptcy. If gold doesn't turn soon, they won't be able to financetheir operations. A lot of these guys lose money and just kept goingout and raising more. They just keep losing money, so they close themines. That’s also very bullish for gold. We're going to have less andless gold in production.
TGR: What about the juniors that aren't in production?
JE:I'm not worried about the ones that have real ore bodies and havegotten pounded down to where they’re trading at $10, $15, or $20 anounce in the ground.
TGR: Because they’ll be taken out?
JE:They’ll be taken out or they’ve hit bottom and, as long as they haveenough capital to move forward, they can gear down. Small, quality goldshares are proxies for a higher gold price. The problem is that thegold price is so severely suppressed vis a vis other commodities thatthe whole business has become uneconomical.